Recent Changes to the REALTORS^® Code of Ethics

June 5, 2025 Changes to the Code of Ethics

Revised Standard of Practice 1-12

When entering into listing contracts, REALTORS^® must advise sellers/landlords of:

1. the REALTOR^®'s company policies regarding cooperation and the amount(s) of any compensation that will be offered to subagents, buyer/tenant agents, and/or brokers acting in legally recognized non-agency capacities;
2. the fact that broker compensation is not set by law and is fully negotiable;
3. the options and amounts of compensation, if any, that may be offered to subagents, buyer/tenant agents, and/or brokers acting in legally recognized non-agency capacities;
4. 2. the fact that buyer/tenant agents or brokers, even if compensated by listing brokers, or by sellers/landlords may represent the interests of buyers/tenants; and
5. 3. any potential for listing brokers to act as disclosed dual agents, e.g. buyer/tenant agents. (Adopted 1/93, Renumbered 1/98, Amended 1/03, Amended and effective June 5, 2025)

Revised Standard of Practice 1-13

When entering into buyer/tenant agreements, REALTORS^® must advise potential clients of:

1. the REALTOR^®'s company policies regarding cooperation;
2. the fact that broker compensation is not set by law and is fully negotiable;
3. 2. the amount of compensation to be paid by the client;
4. 3. the potential for additional or offsetting compensation from other brokers, from the seller or landlord, or from other parties;
5. 4. any potential for the buyer/tenant representative to act as a disclosed dual agent, e.g. listing broker, subagent, landlord's agent, etc., and
6. 5. the possibility that sellers or sellers' representatives may not treat the existence, terms, or conditions of offers as confidential unless confidentiality is required by law, regulation, or by any confidentiality agreement between the parties. (Adopted 1/93, Renumbered 1/98, Amended 1/06, Amended and effective June 5, 2025)

Revised Standard of Practice 1-16

When acting as a listing broker or property manager, REALTORS^® shall not use, or permit or enable others to use, listed or managed property on terms or conditions other than those authorized by the owner or seller. (Adopted 1/12, Amended and effective June 5, 2025)

Revised Standard of Practice 3-1

REALTORS^®, acting as exclusive agents or brokers of sellers/ landlords, establish the terms and conditions of offers to cooperate. Unless expressly indicated in offers to cooperate, cooperating brokers may not assume that the offer of cooperation includes an offer of compensation. Terms of compensation, if any, shall be ascertained by cooperating brokers before beginning efforts to accept the offer of cooperation.

When acting as exclusive agents or brokers of sellers/landlords, REALTORS^® will work with sellers/landlords to establish the terms and conditions of offers to cooperate. Unless expressly indicated in offers to cooperate, cooperating brokers may not assume that the offer of cooperation includes an offer of compensation. (Amended 1/99, Amended and effective June 5, 2025)

Revised Standard of Practice 3-2

Any change in compensation offered for cooperative services must be communicated to the other REALTOR^® prior to the time that REALTOR^® submits an offer to purchase/lease the property. After a REALTOR^® has submitted an offer to purchase or lease property, the listing broker may not attempt to unilaterally modify the offered compensation with respect to that cooperative transaction.

If compensation is offered or advertised by the listing broker, any change in offered compensation must be communicated as soon as practical. After a REALTOR^® has submitted an offer to purchase or lease property, the listing broker may not unilaterally modify the offered compensation. (Amended 1/14, Amended and effective June 5, 2025)

REALTORS^® are prohibited from delaying or withholding delivery of a buyer’s/tenant’s offer while attempting to negotiate compensation. These ethical obligations in no way restrict the REALTORS^®' or clients’ ability to negotiate compensation in the clients’ best interest, including in offers to purchase or lease. (Adopted and effective June 5, 2025)

Revised Standard of Practice 3-9

REALTORS^® shall not provide access to listed property on terms other than those established by the owner or seller. (Adopted 1/10, Amended 1/23)

When acting as a cooperating broker, or in a capacity other than as a listing broker or property manager, REALTORS^® shall not access or use, or permit or enable others to access or use, property on terms or conditions other than those established by the owner or the seller. (Adopted 1/10, Amended 1/23, Amended and effective June 5, 2025)

Revised Standard of Practice 9-2

When assisting or enabling a client or customer in establishing a contractual relationship (e.g., listing and representation agreements, purchase agreements, leases, etc.) in person, electronically, or through any other means, REALTORS^® shall make reasonable efforts to explain the nature and disclose the specific terms of the contractual relationship being established prior to it being agreed to by a contracting party. (Adopted 1/07, Amended and effective June 5, 2025)

Revised Standard of Practice 10-1

When involved in the sale or lease of a residence, REALTORS^® shall not volunteer information regarding the racial, religious or ethnic composition of any neighborhood nor shall they engage in any activity which may result in panic selling, however, REALTORS^® may provide other demographic information.

When involved in the sale or lease of a residence, REALTORS^® shall not volunteer information regarding the racial, religious or ethnic composition of any neighborhood, however, REALTORS^® may provide other demographic information. REALTORS^® shall not engage in any activity which may result in panic selling or steering (Adopted 1/94, Amended 1/06, Amended and effective June 5, 2025)

Revised Standard of Practice 10-5

REALTORS^® must not use harassing speech, hate speech, epithets, or slurs based on race, color, religion, sex, disability, familial status, national origin, sexual orientation, or gender identity.

REALTORS^®, in their capacity as real estate professionals, in association with their real estate businesses, or in their real estaterelated activities, shall not harass any person or persons based on race, color, religion, sex, disability, familial status, national origin, sexual orientation, or gender identity.

As used in this Code of Ethics, harassment is unwelcome behavior directed at an individual or group based on one or more of the above protected characteristics where the purpose or effect of the behavior is to create a hostile, abusive, or intimidating environment which adversely affects their ability to access equal professional services or employment opportunities. (Adopted and effective November 13, 2020, Amended 1/23, Amended and effective June 5, 2025)

Revised Standard of Practice 16-11

On unlisted property, REALTORS^® acting as buyer/tenant representatives or brokers shall disclose that relationship to the seller/landlord at first contact for that buyer/tenant and shall provide written confirmation of such disclosure to the seller/landlord not later than execution of any purchase or lease agreement. (Amended 1/04)

REALTORS^® shall make any request for anticipated compensation from the seller/landlord at first contact. (Amended 1/98)

This ethical obligation in no way impacts REALTORS^® or consumers’ ability to negotiate compensation. (Adopted and effective June 5, 2025)

Revised Standard of Practice 16-16

REALTORS^®, acting as subagents or buyer/tenant representatives or brokers, shall not use the terms of an offer to purchase/lease to attempt to modify the listing broker's offer of compensation to subagents or buyer/tenant representatives or brokers nor make the submission of an executed offer to purchase/lease contingent on the listing broker's agreement to modify the offer of compensation. (Amended 1/04)

(Deleted effective June 5, 2025)

January 1, 2025 Changes to the Code of Ethics

Revised Article 4

REALTORS^® shall not acquire an interest in or buy or present offers from themselves, any member of their immediate families, their firms or any member thereof, or any entities in which they have any ownership interest, any real property without making their true position known to the owner or the owner's agent or broker. In selling property they own, or in which they have any interest, REALTORS^® shall reveal their ownership or interest in writing to the purchaser or the purchaser's representative. (Amended 1/00)

REALTORS^® who have a present ownership interest in property for sale or lease, or contemplated interest to purchase or lease property, must disclose in writing the existence of such interest to all parties to the transaction prior to a party signing any agreement. (Amended 1/25)

Revised Standard of Practice 4-1

For the protection of all parties, the disclosures required by Article 4 shall be in writing and provided by REALTORS^® prior to the signing of any contract. (Adopted 2/86)

The present ownership interest in property for sale or lease, or contemplated interest to purchase or lease property, includes transactions in which REALTORS^®:

1. represent themselves
2. represent a member of their immediate family
3. represent their firm or any broker or agent thereof
4. represent an entity in which the REALTOR^® or member of their immediate family has a legal interest. (Adopted 2/86, Amended 1/25)

NEW Standard of Practice 4-2

REALTORS^® are not required to disclose the identity of the client or customer, nor the specific nature of the interest referred to in Article 4, but must disclose that an interest exists. (Adopted 1/25)

Revised Standard of Practice 11-2

The obligations of the Code of Ethics in respect of real estate disciplines other than appraisal shall be interpreted and applied in accordance with the standards of competence and practice which clients and the public reasonably require to protect their rights and interests considering the complexity of the transaction, the availability of expert assistance, and, where the REALTOR^® is an agent or subagent, the obligations of a fiduciary or the applicable agency duties required by law. (Adopted 1/95 Amended 1/25)